Principal Accounts Office
Government of NCT of Delhi

Suspense Account (Civil) and other Suspense Heads

This chapter deals with the following Suspense Heads:-

(1) 102-Suspense Account (Civil)

(2) 113-Provident Fund Suspense

(3) 114-External Assistance Suspense

(4) 116-Remittances between England and India through RBI

6.1 SUSPENSE ACCOUNT (CIVIL)

6.1.1This, transitory minor head is operated for the accounting of transactions which for want of certain information, documents viz. vouchers, challans etc. cannot be taken to the final head of expenditure or receipt. On receipt of requisite information/documents etc., this minor head is cleared by minus debit or minus credit by per contra debit or credit to the concerned major /sub-major/minor heads of account. This minor head has the following sub-heads:-

(a) Treasury Suspense

(b) Objection Book Suspense

(c) Outstation Pay Bills for March

(d) Unclassified Suspense

(e) Challans / Vouchers Suspense

(f) Cheques cancelled but paid

(g) Other Miscellaneous items

(h) Account with Railways

(i) Account with Defence

(j) Account with P&T

(k) Account with Accountants General

(l) HBA Suspense

(m) Motor Conveyance Advance Suspense

(n) NDF Suspense.

Out of the above, sub-heads at (a), (b) and (g) to (k) are operated in the books of State Accountants General. The last sub-head is operated only when funds towards National Defence Fund are collected through deduction from salaries.

The sub-heads as detailed below are authorised to appear in the books of a departmentalised Pay and Accounts Office.

6.1.2Outstation Pay Bills for March.

6.1.2.1Normally the pay and allowances for a month are payable on the last working day of the month. However, the pay and allowances for March are payable on the first working day of April. This sub-head is meant for initial recording of expenditure on account of payment of outstation pay and allowances etc. for March by bank drafts issued in the month of March for arranging timely payment since the debit on account of the bank drafts issued in March appears in the payment scrolls for March itself. Such initial debits for net amount of cheques against which bank drafts are obtained are cleared by affording 'minus' debit under this sub-head.

6.1.2.2When a bill for the pay and allowances for March in respect of outstation establishment, is passed for payment, the classification on the bill for the net amount payable is shown as under:--

Dr. 8658-Suspense Accounts
102-Suspense Account (Civil)
-Outstation Pay Bills for March

As explained in previous chapters, the total amount of cheques delivered during the month is credited to Major Head "8670-Cheques and Bills-PAO Cheques or Departmental Cheques" as the case may be.

6.1.2.3 In the month of April, the paid vouchers on account of pay and allowances for March are posted in the compilation sheet for the gross amount under the concerned major/minor heads or account. The recoveries on Recount of GPF etc. are also credited to the respective Heads of account. The net amount paid through bank drafts is booked as 'minus' debit to the head '8658 - Suspense Accounts-Suspense Account (Civil) Out-station Pay Bills for March', thus clearing the original debit lying under this head.

6.1.3 Unclassified Suspense:-

6.1.3.1 This sub-head is operated upon in the books of Pay and Accounts Office for the interim booking of an item received through an Inward Account which is found to be 'prima facie' adjustable in Us books but the Pay and Accounts Office considers it necessary to consult the Departmental Officer to decide on the specific head against which the claim is to be finally classified. In some cases Pay and Accounts Office may not be able to decide about the correct major head where the Ministry/Department is operating on more than one major head with overlapping functions like Health and Family Welfare Schemes propagated through Doordarshan, A.I.R. etc. by the Ministry of Health & Family Welfare.

6.1.3.2In such cases as the debit is definitely to be adjusted in the books of the receiving Pay and Accounts Office it has to accept the debit in full and send a cheque to the Accounts Officer against the debit raised. But debits so found acceptable are to be booked under the suspense sub-head "Unclassified Suspense" below the minor head 102-Suspense Account (Civil). After issue of the cheque and classifying the debit under this suspense head, the Pay and Accounts Office has to refer the sub-Vouchers to the Departmental Officer concerned requesting him to indicate the correct head of account under which the debits are to be accounted for. The Departmental Officer keeping in view the indent number and date or other relevant reference quoted in the sub-vouchers would be in a position to link these debits with the orders placed and supplies received by him or otherwise verify the transaction/claim. He is, therefore, in a position to indicate the correct head of account. On receipt of the correct head of account, the Pay and Accounts Office prepares transfer entry as indicated below:-

Dr. Correct functional head of account
as intimated by the Departmental Officer

To

8658-Suspense Accounts
102-Suspense Account (Civil)
-Unclassified Suspense

(-) Dr.

(Transfer Entry prepared to book the debit to the final head of account as ascertained from the Departmental Officer).

6.1.4Challans/ Vouchers Suspense:-

6.1.4.1 This interim sub-head is operated by the Pay and Accounts Office for the accountal of transactions for which supporting challans/vouchers are wanting or when the transaction is not readily susceptible of classification for unavoidable reasons.

This sub-head has two detailed heads viz. "Challans Suspense" and "Vouchers Suspense".

6.1.4.2Occasionally, the receipt scrolls received from the accredited bank may not contain a particular challan or the classification given on the challan may not be correct. In such cases, it is not proper to reject a credit given in the receipt scroll. In such circumstances, Pay and Accounts Office has to (a) write a letter to the bank calling for the copy of the missing challan or (b) contact the Departmental Officer concerned who had deposited the amount into the bank to ascertain the correct head under which the amount deposited by him is to be classified.

6.1.4.3In both the instances the receipt scrolls are to be accepted in full and debit has to be given to "8658-Suspense Accounts 108-PSB Suspense", or "8675-Deposits with Reserve Bank 101-Central-Civil" as the case may be. As the credit in either of the two cases could not be correctly classified. it is taken to this suspense head as:-

Cr. 8658-Suspense Accounts
102-Suspense Account (Civil)
-Challans Suspense

6.1.4.4 On getting a copy of the challan from the bank or after getting correct classification of the amount deposited by him into the bank from the Departmental Officer concerned, as the case may be, the Pay and Accounts Office will know the correct head to which the credit is to be taken. Then a transfer entry has to be prepared as under:-

(-) Cr. 8658-Suspense Accounts
102-Suspense Account (Civil)
-Challans Suspense

To

Correct head to which the challan is to be credited or minus debited to an expenditure head in case of refund of LTC advance, etc as the case may be.

(Transfer Entry prepared to classify the wanting challans/unclassified challans to the proper head of account).

6.1.4.5 Similarly, the supporting vouchers for an Inward Account are to be sent by the section receiving Bank Scrolls to the Payment section for classification. Instances are not rare where a voucher included in a claim is misplaced in Pay and Accounts Office. Pending receipt of a duplicate voucher from the Accounts Officer who had raised the debit, the missing voucher is to be classified as:-

Dr. 8658-Suspense Accounts
102-Suspense Account (Civil)
-Vouchers Suspense 1648 -.

6.1.4.6 On receipt of the duplicate copy of the voucher, a Transfer Entry is prepared as under:-

Dr. Final head of account concerned

To

8658-Suspense Accounts
102-Suspense Account (Civil)
-Vouchers Suspensel(-) Dr.

(Transfer Entry prepared to classify the wanting voucher to the proper head of account).

Note:-The amount of the voucher(s) found missing at the time of verifying the daily memorandum of pre-check payments list of payments is similarly debited to the sub-head 'Vouchers Suspense' and is cleared in the above manner on receipt of the missing voucher(s).

6.1.4.7 Apart from the instances as above occasionally mistakes may occur at the time of issue of cheques in the Pay and Accounts Office e.g.;

(i) There may be variance in the amounts of the 'Pass Order' recorded by the Drawing and Disbursing Officer and the 'Pay Order' recorded by the Pay and Accounts Office,

(ii) There may be variance in the amount of the Pay Order and the amount of cheque issued.

In case the pay order is for a higher amount than the pass order or the cheque has been issued for a higher amount than the pay order, the errors will be detected at the time of compiling the voucher as the amount of cheque would be more than the amount of the bill. The difference between the amounts of voucher and of cheque will be debited under the Suspense head 'Vouchers Suspense' on the presumption that some voucher is missing and the matter would be reported to the Pre-check Section. The Drawing and Disbursing Officer may also bring the excess payment to the notice of the Pay and Accounts Office. On receipt of such an intimation the Pay and Accounts Office will scrutinise the original voucher and if excess payment has been made, will request the concerned party to refund the amount by cheque/bank draft. On receipt of the cheque/draft the same will be deposited in the bank with a challan on which necessary classification has to be recorded. The debit lying under the head 'Suspense Account (Civil)- Vouchers Suspense' will be cleared by minus debit by per contra debit to "Public Sector Bank Suspense" or "Deposits. with Reserve Bank" as the case may be, when the scroll listing the connected challan is posted in account. In case the cheque has been issued for a lesser amount than the amount of pay order, the error will be detected at the time of posting the voucher as the account will not tally. The difference will be classified as credit under 'Vouchers Suspense' presuming that some credit schedule is wanting. The Compilation Section will report the discrepancy to the Pre-check Section. The Drawing and Disbursing Officer who received a cheque for lesser amount may also bring this fact to the notice of the Pay and Accounts Office. In either case the original voucher is to be examined and the reason for the error is to be determined. Thereafter. the Pre-check Section will prepare a manuscript bill and record a pay order for the amount of the difference. At this stage the classification will be recorded on the bill as under:-

(-) Cr. 8658-Suspense Accounts
102-Suspense Account (Civil)
-Vouchers Suspense.

and credit to the head

'8670 -Cheques and Bills
102-Pay and Accounts Offices Cheques'

The earlier credit booked under this head will thus be cleared when this fresh voucher is posted.

6.1.5Cheques cancelled but paid:

6.1.5.1This head is operated in circumstances when the original cheque had been cancelled and a fresh cheque in lieu thereof had been issued but later on the original cheque is found to have been encashed. This sub-head will be cleared by recovery of the amount from the payee or the balance may be written off as per the prescribed procedure.

6.1.6 HBA Suspense/Motor Conveyance Advance Suspense:

These sub-heads will be operated upon for adjustment of missing credits/debits of House Building Advances/ Advances for purchase of Motor Conveyances relating to pre-departmentalisation period on the basis of collateral evidence/affidavit. The missing credits of HBA or MCA are adjusted on the basis of collateral evidence or on submission of an affidavit by the officer who drew such advance by debiting the head "8658- Suspense Accounts-102-Suspense Account-(Civil)-HBA Suspense or MCA Suspense" by per contra credit to the Head "7610-Loans to Government Servant"' etc.-201-House Building Advances or 202-Advances for purchase of Motor Conveyances", as the case may be. Similarly, missing debits in respect of the above advances could be adjusted on the basis of collateral evidence or affidavit in the following manner:-

(-) Cr. 7610-Loans to Government Servants etc.
201-House Building Advances
Or
202-Advances for purchase of Motor Conveyances

Cr. 8658-Suspense Accounts
102-Suspense Accounts (Civil)
HBA Suspense
Or
MCA Suspense, as the case may be.

After adjusting the missing credits or debits under HBA/MCA Suspense on the basis of collateral evidence or affidavit. Pay and Accounts Office has to conduct necessary examination/undertake correspondence with the Accounts Officer concerned who paid the advance to the officer or effected the recoveries from the officer before departmentalisation of accounts for obtaining corresponding debits/credits. Pay and Accounts Office may succeed in some cases. The balances of such missing debits/credits traced by the Accountant General will be transferred to the Pay and Accounts Office on Proforma basis and adopted by the latter. After adopting credit or debit balance transferred on Proforma basis by the State Accountants General in the Ledger, which already stands adjusted on collateral evidence or on affidavit basis under the head '7610-Loans to Government Servants etc. 201-House Building Advances or 202-Advances for purchase of Motor Conveyances', the Pay and Accounts Office should clear the head "8658-Suspense Accounts-102-Suspense Account (Civil)-HBA/MCA Suspense" operated at the time of adjusting missing credit or debit, on collateral evidence or on affidavit basis by credit or minus credit to the Head '7610-Loans to Government Servants etc. 201 House Building Advances or 202-Advances for purchase of Motor Conveyances' to adjust the balance adopted on Proforma basis.

In majority of cases, the Pay and Accounts Office may not be able to obtain the debits/credits from the other Accounts Officer. In each such case the amount booked under the suspense head may have to be considered for write off with the approval of the Controller General of Accounts as book keeping error in terms of Rule 38 of Government Accounting Rules, 1990.

6.2PROVIDENT FUND SUSPENSE (P. F. SUSPENSE)

6.2.1This head is to be operand for adjustment of missing credits and missing debits in the General Provident Fund Ledger of a subscriber on the basis of collateral evidence/ affidavit.

6.2.2 The adjustment in such cases whether they relate to pre-departmentalisation period or post-departmentalisation period are made on the basis of orders of Controller General of Accounts issued from time to time. The credits/debits missing in Provident Fund Accounts are brought to account by means of a Transfer Entry by keeping the corresponding debits/credits under this Suspense Head.

6.2.3After acceptance of collateral evidence/affidavit, a transfer entry has to be made in respect of missing credits and debits as follows:-

(a) Adjustment of missing credits

Dr. 8658-Suspense Accounts
113-Provident Fund Suspense

To

8005-State Provident Funds
01-Civil
101-General Provident Funds.

Cr.

(Transfer Entry prepared to adjust the missing credit of Shri---------------being subscription towards General Provident Fund Account No. -------- for the month (s) ---------- on the basis of collateral evidence/affidavit.)

(b) Adjustment of missing debits

Dr. 8005-State Provident Funds
01-Civil
101-General Provident Funds

To

8658-Suspense Accounts
113-Provident Fund Suspense

Cr.

(Transfer Entry prepared to adjust the missing GPF debit of Shri---------------G P. Fund Account No. ------------------for the month of -------------on the basis of collateral evidence/affidavit).

6.2.4 A note of such adjustments made is to be kept in the Register of missing G. P. Fund credits/debits in Form CAM 50.

6.2.5Simultaneously, the Pay and Accounts Office is to take up correspondence with the State Accountant General in case of pre-departmentalisation period and the concerned Pay and Accounts Office in respect of post-departmentalisation period furnishing it full details of the subscriber, his GPF Account No., name of the DDO and bill number and date, voucher number and date, amount of the voucher wherever available and request it to pass on the credits/debits to the former. The credits/debits traced by the State Accountant General for pre-departmentalisation period are transferred to the Pay and Accounts Office on proforma basis and adopted by the latter. On adoption of the credit/debit balances on proforma basis, the Pay and Accounts Office will clear the original Debit/Credit under the head "8658--Suspense Accounts-113-Provident Fund Suspense" by minus debit or minus credit by per contra minus credit or minus debit under the head "8005-State Provident Funds 01- Civil 101-General Provident. Funds" to clear the credit or debit balance adopted on proforma basis.

6.2.6 The credits/debits for post-departmentalisation period traced by the other Pay and Accounts Office are settled on cash basis by issue of cheques/bank drafts in the manner indicated below:

(a)For credits traced

The other Pay and Accounts Office will send a cheque/bank draft for the amount of the credit traced. On receipt of the cheque/bank draft the receiving Pay and Accounts Office will prepare a challan and deposit the same in the bank branch for credit to its account with the bank. On receipt of receipt scroll the following adjustment would be carried out in accounts.

Dr. 8658-Suspense Accounts
108-PSB Suspense

Or

8675-Deposits with Reserve Bank
101-Central-Civil

(-) Dr. 8658-Suspense Accounts
113-Provident Fund Suspense

The above adjustment would clear the original Debit under the head P. F. Suspense.

(b) For debits traced

The other Pay and Accounts Office will send a debit advice to the Pay and Accounts Office duly supported by the paid voucher requesting it to send a cheque/bank draft for the amount of debit. On receipt of the debit claim the receiving Pay and Accounts Office will issue a cheque by credit to the head 8670-Cheques and Bills-P.A.O. Cheques for the amount of debit classifying the amount as minus credit, to "8658-Suspense Accounts 113-PF Suspense", thus clearing the original credit booked under it at the time of adjusting the missing GPF debit on the basis of collateral evidence/affidavit.

6.2.7 The balances outstanding under the Suspense Head either as a credit or a credit will be written off as a book keeping error under the provisions of Rule 38 of Government Accounting Rules, 1990 with the specific approval of the Controller General of Accounts for which proposals will be furnished by the Chief Controller of Accounts / Controller of Accounts as and when called for by the former. On receipt of approval of the Controller General of Accounts for write-off of the balances, the following transfer entries are made:

(a) For Debits under 'PF Suspense'

Dr. 8680-Misc. Govt. Accounts
102-Writes off from Heads of Account closing to balance

To

8658-Suspense Accounts
113-Provident Fund Suspense.

(-) Dr.

(b) For credits under 'PF Suspense'

(-) Cr. 8658-Suspense Accounts
113-P. F. Suspense

To

8680-Misc. Govt. Accounts
102-Writes off from Heads of Account closing to balance.

Cr.

(Transfer Entry prepared to write off the balances from the Head P.F. Suspense to 'Misc. Government Account' as book keeping error as approved by Controller General of Accounts vide -----------)

Note:Authority of Controller General of Accounts may invariably be quoted in the transfer entry.

6.3 External Assistance Suspense

6.3.1 This Minor Head is operated to accommodate the net effect of receipts and payments of External Assistance Transactions (foreign loans and grants/aids) originating in U.K. and U.S.A., accounts of which are rendered by High Commission of India, London and Embassy of India, Washington to the Principal Accounts Office, Ministry of External Affairs.

6.3.2 High Commission of India, London and Embassy of India, Washington render the accounts with original vouchers and schedules to the Controller of Aid Accounts and Audit, Ministry' of Finance and reflect the figures of total receipts/payments of these transactions in the main cash account of the particular month meant for settlement by Chief Controller of Accounts, Ministry of External Affairs with the Controller of Aid Accounts and Audit.

6.3.3 Office of the Chief Controller of Accounts, Ministry of External Affairs at the compilation stage keeps all such figures under "External Assistance Suspense" for which specific advice of booking is sent every month to the Controller of Aid Accounts and Audit for his acceptance. After having received the accounts from the Missions, the former office classifies all the transactions to the respective heads for incorporation in its accounts. The account is tallied by booking the corresponding amount to the head "External Assistance Suspense". Some of the common heads usually operated by the Controller of Aid Accounts and Audit for booking to the final heads are as under:

I (Cr.) 1605-External Grant Assistance

II(Cr.) 0049-Interest Receipts
03 -Other Interest Receipts of Central Government
111-Interest from Advances to Foreign Governments

(Dr.) 2049-Interest Payments
02-Interest on External Debt
(Minor Heads concerned)

(Dr.) 6002-External Debt (Minor Heads concerned)

6.3.4 The corresponding debit or credit so booked by Controller of Aid Accounts and Audit in his books would tally with the contra credit or debit figures communicated by Chief Controller of Accounts, Ministry of External Affairs through his monthly advice of the particular month. At the time of closing of financial year, these sets of figures as communicated by the former and accepted by the latter are reconciled and the net debit or credit so reconciled is cleared by way of proforma dropping in the Finance Accounts of Ministry of External Affairs and Controller of Aid Accounts and Audit. Hence, the debit/credit under this 'Suspense Head' booked by Chief Controller of Accounts, Ministry of External Affairs and per contra credit/debit booked by Controller of Aid Accounts and Audit are paired off. It has to be ensured that in the Statement No. 33 rendered by Chief Controller of Accounts, Ministry of External Affairs as well as by the Controller of Aid Accounts and Audit, Ministry of Finance, this head closes with a 'Nil' balance.

6.4 Remittances between England and India through RBI.

6.4.1 This head is to be operated only by the Chief Controller of Accounts, Ministry of External Affairs who is directly or indirectly arranging remittances to High Commission of India, London in order to enable him to make disbursements for the purchases done in U.K. on behalf of Central Government, States, Railways, Defence, Posts and Telecommunications etc.

6.4.2 The High Commission of India, London is being provided with funds by the Bank of England. The funds are being remitted to Bank of England by Reserve Bank of India, Bombay on the basis of advices received from Bank of England.

6.4.3Similarly, Aid and Loans on behalf of India are being received by High Commission of India, London and surplus funds are remitted to RBI, Bombay through Bank of England, London.

6.4.4Remittances from India as well as remittances from England to India which are made through RBI, Bombay are effected at the commercial rate of the day for telegraphic transfers.

6.4 5 On receipt of necessary intimation from Reserve Bank of India, Bombay regarding remittance of funds to Bank of England for providing funds to High Commission of India, London or receipt of surplus funds from the Bank of England, Reserve Bank of India, New Delhi debits/credits the account of the Chief Controller of Accounts, Ministry of External Affairs.